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TMI Blog2002 (12) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of exporting goods worth Rs. 1673 lakhs by 1994-95, a show cause notice was issued to them on 26-4-2000 for confiscation of the capital goods imported/procured indigenously, for demanding Customs duty and Central Excise duty on the goods imported and indigenously procured and for imposition of penalty and interest; that the Commissioner has dropped the demand of duty on the sole ground that as per condition No. 6 specified in Notification No. 13/81-Cus., dated 9-2-1981, the duty can be demanded only when it is proved that the materials have not been used for the intended purposes i.e. in the manufacture of articles for export and this being not the case, violation of condition No. 6 has not been established. The learned SDR submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho have failed to achieve the stipulated Value Addition or Export Obligation. 3. On the other hand, Shri B.L. Narasimhan, learned Advocate, submitted that the approval was given to the Respondents for setting up of the 100% EOU vide letter dated 25-8-88; that the condition stipulated in the letter of permission was that they would undertake to export the entire production, excluding rejects not exceeding 5%, for a period of ten years; that as such there was no obligation on them to export a particular quantity or value up to 5 years; that further a minimum of 20% value addition was required to be achieved on all authorised production; that capital goods have been installed in EOU premises and are used for export production; that these cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an EOU. 4.1 We have considered the submissions of both the sides. The respondents have imported the capital goods availing the benefit of exemption under Notification No. 13/81-Cus., dated 9-2-1981. This notification exempts specified goods when imported into India for the manufacture of articles for export out of India by 100% EOUs subject to the conditions specified in the notification. One of the conditions is that the importer exports out of India 100% or such other percentage as may be fixed by the Board of Approval for the period stipulated by the Board. Condition No. 6 of the notification reads as under : "The importer executes a bond in such form and for such sum and with such authority, as may be prescribed by the Assistant Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notification while holding that duty can be demanded only when it is proved that materials imported have not been used for the manufacture of articles for export. Condition No. 6 of the notification clearly stipulates that the importer executes a bond binding himself to fulfil the export obligations and conditions stipulated in the notification and in or under the Export Import Policy. Condition No. 6 further mentions that the importer will also bind himself in the bond to pay on demand an amount equal to the duty leviable on the goods as are not proved to the satisfaction of the Assistant Commissioner to have been used in the manufacture of articles for export. This does not mean that the duty forgone can be demanded only when it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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